Mortgage Rates Still In A Fantastic Place
Posted by Kevin Kueneke | Visited 744 times, 1 so far today | Currently 1 Comment »
When rates shot up a month or so ago, we saw many potential San Diego real estate buyers get cold feet since 30 year fixed rates in the 4’s were gone. These buyers felt that the home of their dreams was no longer available if their rate was not under 5%. Face it, we were all spoiled. 
I remember in 1994 when conforming “A” paper first mortgage rates were as high as 10% and people were still buying homes. This was immediately following the first real refinance boom of our time (1992-1993) when rates were down to 6% or so.
Those that were in the industry in the ’80′s tell tales of rates in the 13′s and 14′s. So a rate just over 5% is not a good deal…?
How much of a difference does it make if the rate is just under 5% vs. just over 5%? The payment on a $400,000 loan at 5.125% is only $62 more than at 4.875%. The payment on a $200,000 loan at 5.125% is only $31 more than at 4.875%.
If you are a buyer that thinks a rate above 5% is high, call or email me and I can show you the payment difference for your particular price range. You might be pleasantly surprised.
**FHA, VA, High Balance Conforming buyers should also call. Your rates are great as well!
Email: Kevin@MyCWMtg.com Phone: (760)500-1919
Thanks for that Kevin.